In the field of Supply Chain Management, little has changed in the Supplier Selection Process and Supplier Selection Criteria. Spending categories are generally segregated based on volume and assigned into a non-critical, strategic or bottleneck category. Bottleneck categories items are often the most difficult to manage as they require primary and secondary, or multiple supply sources. Strategic items are often used for Supplier Collaboration initiatives where you choose supplier-partners that get involved in product development, collaborative forecasting and planning and sharing or inventory information and other critical operational data.

the world of BPO and ITO have revolutionized how to view Strategic Sourcing.

However, during this time the world of Business Process Outsourcing (BPO) and Information Technology Outsourcing (ITO) have revolutionized how to view Strategic Sourcing. Based on the work by Oliver Williamson, the 2009 Nobel Award Winner for Economics, companies view outsourcing based on Transaction Cost Economics. He viewed sourcing as a continuum versus a simple make-versus-buy decision. Supplier Evaluation is conducted based on the information below.